Published: September 2020 | Report Code: SE11645 | Available Format: PDF | Pages: 146
From $1,873.1 million in 2019, the U.A.E. heating, ventilation, and air conditioning (HVAC) market size is projected to advance to $2,774.7 million by 2030, at a CAGR of 5.2% during the forecast period (2020–2030). The key factors propelling the industry are the increase in the infrastructure investments in commercial, industrial, and residential sectors and growth in the tourism industry of the country.
The U.A.E. HVAC market growth has been hampered due to the COVID-19 scenario, both on the demand and supply sides. Due to the lockdown imposed by the government, the tourism industry has been affected the most; it normally contributes around 12% to the country’s GDP. Similarly, non-essential commercial operations in the U.A.E. have also ceased, which has put a deeper dent in the demand for HVAC equipment.
As per the industry outlook, the cooling category, on the basis of equipment type, has dominated the U.A.E. HVAC market till 2019, and it is projected to continue this trend during the forecast period. Due to the desert climate of the country, along with the incoming humidity from the Persian Gulf, the country witnesses unbearable heat for the most part of the year. In addition, urbanization, owing to the continuous inflow of capital from government-sector and private-sector entities, is projected to drive the construction sector, thus creating a high demand for cooling equipment in the coming years.
As per the market findings, the upgradation/replacement category, based on service type, generated the major demand in 2019. The demand for upgradation/replacement services is primarily driven by the requirement for component replacement in the existing equipment and new sales of HVAC equipment in the country.
The commercial category, on the basis of end user, is projected to exhibit the highest CAGR in the U.A.E. HVAC market during the forecast period. Aided by government initiatives, such as the National Strategy for Higher Education 2030 and Dubai Tourism Strategy 2020, the demand for HVAC systems is expected to shoot up in the commercial category in the coming years.
In 2019, the Dubai region held the largest U.A.E. HVAC market share. The increasing construction activities in the city, in response to Dubai Expo 2020, are expected to drive the HVAC industry, while in the long term, government efforts to reduce the dependency on the oil and gas sector and divert its resources toward sectors such as infrastructure development and tourism, would support the growth of the industry in this emirate.
The U.A.E. HVAC market is projected to witness the highest CAGR in the Abu Dhabi & Al Ain region during the forecast period. The Government of Abu Dhabi is pursuing the Abu Dhabi 2030 plan, which is aimed at attracting at least 7.9 million tourists annually, to reduce the dependence on the oil and gas sector. The expansion of office and retail spaces is further expected to boost the construction sector, which, in turn, is projected to augment the growth of the HVAC market in the coming years.
One of the most prominent trends in the U.A.E. HVAC market is the uptake of smart HVAC systems, which offer better controls, building automation capabilities, advanced monitoring systems, internet of things (IoT)-enabled temperature controls, and smart thermostats. Smart HVAC systems also give better temperature variability and cleaner air, as compared to conventional systems. These systems enable users to monitor the real-time performance of the HVAC equipment and allow for temperature, flow rate, and capacity modulation.
One of the key drivers for the U.A.E. HVAC market growth is the rise in the construction projects in the transportation sector. The increase in the spending on metro railway expansion projects and construction of new airports is supporting the growth in demand for HVAC systems in the country. In the U.A.E, there are several upcoming metro railway expansion projects. For instance, in 2018, the government launched the “Route 2020” project, an extension of Dubai Metro’s Red line. The country is investing heavily on transportation construction projects, due to the upcoming Dubai Expo 2020 event.
|Base Year (2019) Market Size||$1,873.1 Million|
|Forecast Period CAGR||5.2%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional Breakdown, Competitive Analysis, Company Share Analysis, Companies’ Strategic Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||Offering; End-User; Region|
|Market Size of Geographies||Dubai; Abu Dhabi & Al Ain; Sharjah & Other Northern Emirates|
|Secondary Sources and References (Partial List)||Air Movement and Control Association (AMCA), Air-Conditioning, Heating, and Refrigeration Institute (AHRI), American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Qatar Oryx Chapter, Inc., American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), American Society of Mechanical Engineers (ASME), Association of Cooling Professionals (AACP), Consortium for Energy Efficiency (CEE), Global Cold Chain Alliance (GCCA), Heating, Air-conditioning and Refrigeration Distributors International (HARDI), Indoor Environment Energy Efficiency Association (ACCA), International Council of Air-Conditioning, Refrigeration, and Heating Manufacturers Association (ICARHMA)|
Analysis has revealed the U.A.E. HVAC market to be competitive, with several global companies active in the country, including Johnson Controls International plc, Carrier Global Corporation, Daikin Industries Ltd., Mitsubishi Electric Corporation, LG Electronics Inc., and Trane Technologies plc.
In recent years, these and many other organizations in the U.A.E. HVAC industry have focused on product launches, as an effective mechanism to compete in this market, which continues to grow in size.
The U.A.E HVAC market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Offering
Based on End-User
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